Dash is an open protocol that enables anyone, anywhere in the world, to make instant and cheap payments without going through a central authority. Low fees and instant transactions make Dash the preferred method of payment, while DASH’s limited supply continues to attract investors who believe in its characteristics as a store of value.
Today Crypto Lists will discuss DASH price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
Dash enables instant and cheap payments
Dash was created by developer Evan Duffield in January 2014, and it was among a group of early projects to copy and modify Bitcoin‘s code in an attempt to reach a broader market. This project was originally known as Darkcoin, but Evan Duffield rebranded Darkcoin to Dash in 2015.
Dash is based on a decentralized peer-to-peer network, and it allows users to transfer DASH without waiting for transactions to be confirmed on the Dash blockchain. Low fees are also important characteristics of this project, and it is essential to say that Dash solves two of Bitcoin’s biggest problems: the speed of transactions and the lack of privacy.
Transactions with Dash are secure and visible to the entire network in under 1.5 seconds, while this cryptocurrency cannot be traced, and the coin’s history cannot be accessed. Dash is used around the world as a practical alternative to cash and credit cards, and like many cryptocurrencies, Dash has a limited supply. There will only ever be 18.9 million DASH introduced to the network’s economy.
DASH is accepted globally by businesses of all shapes and sizes, and it is especially popular in regions where technical access barriers exist to traditional payment systems. DASH does not face problems with bank holidays, exchange rates, bureaucracy, or hidden fees, and it is not under the control of any single entity.
Dash at present
The beginning of the 2023 year has been very successful for DASH, and the price of this crypto added more than 40% to its value. Despite this, investors should continue to take a defensive investment approach as the US central bank will decide on its next rate hike this week, with Fed Chairman Jerome Powell giving much-anticipated commentary on the economy and policy. The US central bank is widely expected to raise interest by a further 25 bps on Wednesday, taking the Federal Funds Target Range to 4.50-4.75%. Seeking Alpha contributor, Colorado Wealth Management Fund reported:
“The cryptocurrency market edged higher in Tuesday midafternoon trading and is on track to close out a vigorous first month of 2023 as traders prepare for the Federal Reserve’s interest-rate decision due on Wednesday. If the Fed were to defy the consensus and implement a larger-than-expected rate hike, it would potentially bode poorly for crypto prices and other riskier asset classes.”
The main question still remains how many more rate hikes will there be, and how long will interest rates be held at the restrictive terminal level? Many analysts are warning that Fed will hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets again. The European Central Bank will make the same decision a day later, and traders should keep in mind that the crypto selloffs could gather speed if Bitcoin falls below the $20,000 mark again.
Technical analysis for DASH
DASH has advanced more than 40% since the beginning of January 2023, rising from $41.66 to a high of $62.22. The current price of DASH stands at $59.72, and as long the price of DASH is above $50, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.t.
Important support & resistance levels for DASH
On this chart (the period from March 2022), I marked important support and resistance levels that can help traders to understand where the price could move. According to technical analysis, bulls continue to control the price movement of DASH, and if the price advances above $65, the next target could be resistance that stands at $70. The important support level is $50, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $45. If the price drops below $40, which represents very strong support, the next target could be located around $35 or even below.
What speaks for the rise in the DASH price
The amount of DASH traded over the last three weeks saw a significant increase, and if the price advances above $65, the next target could be resistance at $70. Traders are buying DASH despite the expectations of “some market turbulence,” and according to the technical picture, DASH still has room for the upside. Traders should also consider that the price of DASH is correlated with Bitcoin, and if the price of Bitcoin jumps above $25000, we can see this cryptocurrency at a higher price level than the current price.
What indicates the downfall of DASH
DASH has advanced more than 40% since the beginning of January 2023; still, traders should keep in mind that the price can easily return to levels seen in December 2022. The US central bank is widely expected to raise interest by a further 25 bps on Wednesday; still, if the Fed implements a larger-than-expected rate hike, it would potentially bode poorly for DASH. The important support level for DASH stands at $50, and if the price falls below this level, the next target could be $45. The price of DASH is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $20000 price level, that would certainly have a negative influence on the price of DASH.
What do analysts and experts say
The cryptocurrency market sentiment showed positive signs after an encouraging inflation data report from the United States, which was released this Tuesday, showed that the Fed’s actions to quell inflation are actually working. Encouraging inflation data and a positive earnings outlook for many companies lifted investor risk appetite ahead of the next day’s much-anticipated policy meeting of the Federal Reserve. According to Morgan Stanley, recent speeches from Fed officials indicate that the pace of rate increases will slow, but the message will certainly be that the job is not yet done. DASH could advance even more if the Federal Reserve hints at slowing the pace of rate increases or even announces monetary easing.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.